Sydney, Australia – The Reserve Bank of Australia has decided to keep its benchmark lending rate at 4.35% for the fourth consecutive meeting, aligning with predictions from economists surveyed by Reuters. The central bank indicated in a statement that while inflation is decreasing, it has slowed down more than anticipated, maintaining a “high” level. It acknowledged that achieving its 2% inflation target will take time, keeping its options open for future monetary actions.
Retail sales volumes in Australia saw a decline of 0.4% on a seasonally adjusted basis in the March quarter, contrasting with a 0.4% increase in the December quarter, according to government data. Ben Dorber, head of retail statistics at the Australian Bureau of Statistics, attributed the drop to reduced spending on larger household items like furniture and electronic goods. Dorber noted that the only uptick in sales volumes over the past 18 months occurred during the December quarter of last year due to extensive discounting during Black Friday sales.
In Japan, business activity in the service sector surged in April at its quickest pace since August, reaching an index of 54.3 compared to 54.1 in March, marking an eight-month high. The S&P Global survey indicated a consistent rise in business activity since September 2022, reflecting increased spending by businesses and consumers. Japan’s Nippon Steel successfully secured EU approval for its $14.9 billion acquisition of U.S. Steel, leading to a minimal decline in Nippon Steel’s shares and a significant jump in U.S. Steel’s shares in after-hours trading.
Carson Group’s chief market strategist, Ryan Detrick, dismissed the notion of “selling in May and going away,” emphasizing that the market correction in April is now in the past. Detrick highlighted a potential strength in the market during the summer of an election year and expressed confidence in cyclical stocks, with added exposure to industrials and financials. Meanwhile, stocks like Palantir Technologies, Lucid Group, and Hims & Hers Health experienced significant movements in after-hours trading, driven by earnings reports and revenue guidance.
U.S. stock futures experienced marginal declines on Monday evening, with the Dow Jones Industrial Average futures slipping by 8 points, the S&P 500 and Nasdaq 100 futures pulling back by less than 0.1% each. The slight fluctuations in futures hinted at a cautious market sentiment leading into the next trading day.